By Jen Mills
If you found this article via a search engine, it was probably Google.
In the UK, 90% of general search queries use the search engine, and more than 200,000 businesses rely on its advertising.
Now, the UK competition’s regulator has given an update in their investigation into whether Google has too much power, saying it is a ‘key gateway to the internet’ and may need to loosen its control.
The Competition and Markets Authority (CMA) said today that it is minded to give the tech firm ‘strategic market status’, after starting to look into this in January.
This would require Google to follow certain rules around competition with other search engines and ad providers.
What could change for Google users?
At the moment, Google is the default search engine for Apple and Samsung phones in the UK after making deals with their makers, but in future this may have to change.
Users could be given a ‘choice screen’ to pick between search engines, in case they want DuckDuckGo, Bing, Ecosia, or something else instead.
It could be forced to introduce new ‘fair ranking’ measures for its search results, and avoid giving its own products preferential billing (such as YouTube or Google Maps).Advertising costs might indirectly become lower: the government-funded watchdog said that the amount spent by UK business entities for search advertising was equivalent to over £33,000 per advertiser and ‘if competition was working well, we would expect these costs to be lower.’
News publishers might get more control over how their content appears in search results and AI summaries, such as potentially more credit and direct links, as well as more extensive previews.
It might also become easier to port search data to another provider. The CMA said: ‘Innovative businesses struggle to compete as people can’t easily share their search data with firms developing innovative new services which could benefit them.’
Is this just in the UK?
The particular investigation by the CMA is, but there have been similar actions in other jurisdictions too.
In the US, Google may be forced to sell off part of its ad business after it was found to be too dominant, violating antitrust law.
Assistant Attorney General Abigail Slater said: ‘The Court’s ruling is clear: Google is a monopolist and has abused its monopoly power.
‘Google’s unlawful dominance allows them to censor and even deplatform American voices. And at the same time, Google destroyed and hid information that exposed its illegal conduct. Today’s opinion confirms Google’s controlling hand over online advertising and, increasingly, the internet itself.’
The EU has also taken action to regulate Google under competition law.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said: ‘Online search engines are the door through which users discover and find information, products and services.
‘Our initial view is that Alphabet, in the ranking of Google Search results, gives more prominence and treats its services, like shopping or travel, more favourably than similar services of third parties.
‘We also initially found that Alphabet was not enabling free offers and choice for developers and users on its Google Play app store, even though it is required to do so under the Digital Markets Act.
‘Both practices negatively impact many European and non-European businesses that rely on Google Search or Google Play to reach their users in the EU.’
What next for UK users?
Sarah Cardell, chief executive of the CMA, said: ‘Google search has delivered tremendous benefits – but our investigation so far suggests there are ways to make these markets more open, competitive and innovative.
‘Today marks an important milestone in our implementation of the new Digital Markets Competition Regime in the UK.
‘Alongside our proposed designation of Google’s search activities, we have set out a roadmap of possible future action to improve outcomes for people and businesses in the UK.
‘These targeted and proportionate actions would give UK businesses and consumers more choice and control over how they interact with Google’s search services – as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy.’
A final decision on giving Google strategic market status in the UK is due to be made by October following a consultation process.
Google responded
In a blog post today, Oliver Bethell, then company’s senior director of competition, said: ‘The outcome could have significant implications for businesses and consumers in the UK.
‘The positive impact of Google Search on the UK is undeniable. Our tools and services contribute billions of pounds a year to the UK — £118 billion in 2023 alone.
‘The CMA has today reiterated that ‘strategic market status’ does not imply that anti-competitive behaviour has taken place — yet this announcement presents clear challenges to critical areas of our business in the UK. We’re concerned that the scope of the CMA’s considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided.
‘Delivering certainty matters to businesses like ours that relentlessly invest in innovation. It also matters to every UK business that benefits from services like Search to reach customers — and to every user that relies on Search to get things done.
‘The UK has historically benefitted from early access to our latest innovations, but punitive regulations could change that. Proportionate, evidence-based regulation will be essential to preventing the CMA’s roadmap from becoming a roadblock to growth in the UK.
‘As we move into the next phase of this process, we will continue working constructively with the CMA to avoid measures that would limit opportunities for UK businesses and consumers.’
Feature Image Credit: Getty
